P1: OTA/XYZ P2: ABC ind JWBT260-Eades March 16, 2010 12:45 Printer Name: Hamilton P1: OTA/XYZ P2: ABC fm JWBT260-Eades March 16, 2010 12:36 Printer Name: Hamilton The Portable MBA P1: OTA/XYZ P2: ABC fm JWBT260-Eades March 16, 2010 12:36 Printer Name: Hamilton P1: OTA/XYZ P2: ABC fm JWBT260-Eades March 16, 2010 12:36 Printer Name: Hamilton The Portable MBA FIFTH EDITION Edited by Kenneth M. Eades Lynn A. Isabella Timothy M. Laseter Peter L. Rodriguez Paul J. Simko Ian Skurnik John Wiley & Sons, Inc. P1: OTA/XYZ P2: ABC fm JWBT260-Eades March 16, 2010 12:36 Printer Name: Hamilton This book is printed on acid-free paper. ∞  Copyright C  2010 by Kenneth M. Eades, Lynn A. Isabella, Timothy M. Laseter, Peter L. Rodriguez, Paul J. Simko, and Ian Skurnik. All rights reserved. Published by John Wiley & Sons, Inc., Hoboken, New Jersey. Published simultaneously in Canada. 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HD31.C6134 2010 658—dc22 2009049299 Printed in the United States of America. 10987654321 P1: OTA/XYZ P2: ABC fm JWBT260-Eades March 16, 2010 12:36 Printer Name: Hamilton Contents List of Downloadable Materials vii Preface ix About the Authors xv Introduction: The MBA Degree Experience 1 1 Accounting Principles 8 2 The Principles of Economics 28 3 Introduction to Business Ethics 47 4 Marketing Management 63 5 Financial Management 83 6 Operations Management 111 7 Managing People 134 8 Supply Chain Management 156 9 Strategy—Defining and Developing Competitive Advantage 169 10 Financial Analysis and Firm Valuation 187 11 Consumer Behavior 216 12 New Product Creation 227 13 Entrepreneurship 243 14 Emerging Markets and Development 259 15 Enterprise Risk Management 277 16 Leading from the Middle 301 17 Managing Teams 314 18 Starting Your New Career with an MBA 332 Index 339 v P1: OTA/XYZ P2: ABC fm JWBT260-Eades March 16, 2010 12:36 Printer Name: Hamilton P1: OTA/XYZ P2: ABC fm JWBT260-Eades March 16, 2010 12:36 Printer Name: Hamilton List of Downloadable Materials Online and in this book: Downloadable Exhibits 1.1–1.4: PepsiCo Financial Statements and Financial Ratios Downloadable Exhibit 5.3: Estimate of the Value-Added of Replacing a Standard Machine with an Upgraded Machine Downloadable Exhibit 5.4: Hypothetical Example of Value Creation Downloadable Exhibit 5.5: Hypothetical Example of Value Destruction Downloadable Exhibit 5.7: Illustration of Value Creation and Destruction: Market- to-Book Ratios as the Reinvestment Proportion and Return on Capital Spread Vary Downloadable Exhibit 5.8: Illustration of Value Creation and Destruction: Market- to-Book Ratios as the Life of the Project and Its Return on Capital Spread Vary Downloadable Exhibits 5.9 and 5.10: Net Present Value Calculation of a Bond’s Cash Flows from the Standpoint of the Issuer Downloadable Exhibit 10.1: Percentage Change Income Statements Downloadable Exhibit 10.2: Common-Size Vertical Income Statements Downloadable Exhibit 10.3: Percentage Change Balance Sheets Downloadable Exhibit 10.4: Common-Size Vertical Balance Sheets Downloadable Exhibit 10.5: Percentage Change Statements of Cash Flow Downloadable Exhibit 10.6: Summary of Other Key Financial Ratios Downloadable Exhibits 10.8–10.12: Forecasts and Firm Valuation Estimation vii P1: OTA/XYZ P2: ABC fm JWBT260-Eades March 16, 2010 12:36 Printer Name: Hamilton [...]... time 4 The Portable MBA because of the intensity of their shared experience and because of the commonality of their professional interests The Career Search Choosing to leave a job and then pay the necessary tuition to earn an MBA makes it an expensive proposition For most people, the two years as an MBA student represent the largest investment they will ever make in themselves, and they want the experience... reason for seeking an MBA, but there is no escaping the fact that the MBA degree meets the economic payoff test The MBA degree is a vehicle either to accelerate a career or to change careers Either way there are very few who select a full-time program with the intention of returning to their previous jobs, which makes the selection of the new career path an important decision The MBA is a pragmatic degree... downtime MBA students find it a constant challenge to balance their professional and personal lives Most find the first few months of the program to be particularly challenging as they learn the hard way how to make use of every hour of the day There is no typical day in 6 The Portable MBA the life of an MBA, but there are many examples available, such as the following blog written by an MBA student at the. .. should strive to contribute to the many learning opportunities that arise in each class period The learning in the classroom occurs on several levels There are the theory and the business principles being taught by the professor and presented in the assigned materials Then there is the exchange of ideas among the students as they seek to explain these principles and put them to use within a business... Portable MBA series For a deeper dive into finance, for example, you should get The Portable MBA in Finance and Accounting, or for marketing, The Portable MBA in Marketing The next step is to find an MBA program that fits your needs best and “walk the walk” of earning an MBA degree The past few years have added credibility to the quote The only constant in life is change.” In fact, each time we revise The Portable. .. possessed by the students when they arrive for the program MBAs typically enjoy each other’s company in and out of the classroom They look for opportunities to work together and socialize together These are traits of people who typically seek careers in business MBAs also typically bring a sense of giving back to the community in which they live, and MBA programs provide a variety of clubs and other organizations... in the halls of an MBA classroom building is the interview experiences of the students The job search begins with refinement of the student’s curriculum vitae, which is the first source of information for companies to find students for their organizations The campus interview is the key opportunity for students to distinguish themselves with a company and to learn whether the position is feasible for their... possible The good news is that the data show that the benefits of an MBA strongly outweigh the costs Forbes magazine conducts an annual analysis of MBA programs1 that shows that graduates from the top 20 programs are able to recoup the costs of their degrees within an average of 3.6 years The costs included tuition plus the salaries forgone during the two years in the program A higher salary should not be the. .. Attention to the Themes in the Opening Letter to Shareholders The letter to shareholders is usually the first item in the annual report and is valuable on many dimensions, but mainly for understanding at the start the strategic intent of the managers of the firm The letter usually sums up performance during the past year, and expresses elements of the CEO’s goals, values, and vision for the future As... common for many of the deliverables for courses to be team-based work Students use these small groups as an important step in the class preparation process After students work through the assigned materials on their own, they join their learning team to discuss their ideas as a group to learn from each other before attending the class and learning from the professor and the rest of the class Thus, more . marketing, The Portable MBA in Marketing. The next step is to find an MBA program that fits your needs best and “walk the walk” of earning an MBA degree. The past. basics is to utilize other books in the Portable MBA series. For a deeper dive into finance, for example, you should get The Portable MBA in Finance and Accounting,